Understanding Delinquency Policies
To prompt customers to pay their overdue account balances, you must set up rules that the system uses to automatically process delinquent accounts. You can define multiple sets of rules that apply to different classes of customers, or rules that are specific to a customer. Each set of rules that you set up is a policy.
A policy is a common set of rules that the system applies equally to a class of customers. For this class of customers, you can control the rules at multiple levels. To limit the amount of setup that is required by the system to process delinquent customers, you can set up policies that are based on the common methods in which customers should be treated.
Within each policy, you can specify when the system applies fees to delinquent invoices and how it generates notifications based on various levels of delinquency.
When you set up policies, you should define the most general (default) rules first, and then define specific instructions for the exceptions. For example, you can define these types of policies:
Policy Type |
Description |
|---|---|
Standard policy |
This is the default policy that you can apply equally to most customers. |
Standard policy with exception |
This is the standard policy with instructions to override specific default information. For example, you can set up this policy to specify a different aging category or threshold percentage. Use this policy for high-risk customers or new customers. |
Standard policy for a specific company or line of business |
You might want to treat customers differently by company or line of business. This is the standard policy with instructions to override default information for a specific company. |
High-risk policy |
This is a policy that you can set up for customers who must be treated in a specific manner, but it is not specific to a company. This type of policy enables you to manage the situations that require special handling, such as high-risk customers. |
Premier policy |
This is a policy that you can set up for customers who do not require fees, but might require an occasional, friendly reminder for invoices that are overdue by a certain amount of days. |
The system stores information about policies in these tables:
Delinquency Policy (F03B25).
A/R Delinquency Policy Notification (F03B26).
A/R Delinquency Policy Detail - Fees (F03B27).
Note: After you associate a policy with a customer, either manually or automatically using the default policy that was established for company 00000, the association remains in effect until you assign a different policy to the customer. You must set up a blank policy name for company 00000 to use as the default policy.